Sentence Correction

Local building contractors have devoted considerable energy into the development of neighborhoods more environmentally-friendly even than currently on the market.

1) to developing neighborhoods even more environmentally-friendly than those currently on the market
2) to developing neighborhoods that are even more environmentally-friendly than currently on the market

Please tell me what is the difference in both the above sentences with respect to comparison.

Source - Grockit

One before I hit the bed.

Local building contractors have devoted considerable energy into the development of neighborhoods more environmentally-friendly even than currently on the market.

1) to developing neighborhoods even more environmentally-friendly than those currently on the market - Compares the Neighborhoods that are being developed and Neighborhoods currently on the market.
2) to developing neighborhoods that are even more environmentally-friendly than currently on the market - Compares the Neighborhoods that are being developed and currently on the market(crazy)

Now compare these sentences.

These Red houses are better than those in Blue.
These Red houses are better than Blue.